Effect of Innovation Strategies on the Performance of Listed Pharmaceutical Companies in Nigeria
Abstract
This study examined the effect of innovation strategies on the competitive positioning of listed pharmaceutical companies in Nigeria. A cross-sectional descriptive survey design was adopted to investigate the relationships between Offensive Innovation Strategy (OIS), Defensive Innovation Strategy (DIS), Blue Ocean Innovation Strategy (BOIS), and competitive positioning. The population comprised 2,425 employees from seven listed pharmaceutical companies in Nigeria, namely GlaxoSmithKline Nigeria, May and Baker Nigeria Plc, Fidson Healthcare Plc, Neimeth International Pharmaceuticals Plc, Pharma Deko Plc, Morison Industries Plc, and PZ Cussons Nigeria Plc. Using a stratified sampling technique, a sample size of 332 respondents was selected. Data were collected through a structured questionnaire administered between March and May 2026 and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS4. The findings revealed positive correlations among all study variables, indicating that innovation strategies contribute significantly to competitive positioning. Reliability and validity assessments confirmed the adequacy of the measurement model. Hypothesis testing showed that Offensive Innovation Strategy had the strongest positive and significant effect on competitive positioning (β = 0.433, t = 4.425, p = 0.001). Defensive Innovation Strategy also exerted a significant positive influence (β = 0.346, t = 4.531, p = 0.000), while Blue Ocean Innovation Strategy demonstrated a significant positive effect (β = 0.345, t = 4.763, p = 0.000). The study concluded that innovation strategies are critical drivers of competitive positioning in Nigeria’s pharmaceutical industry, with offensive innovation emerging as the most influential predictor. The study recommends increased investment in research and development, continuous product improvement, and the exploration of uncontested market opportunities to strengthen competitiveness and long-term organizational performance.